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i%%%V%1 <br /> 12805 Highway 55 • Suite 212 • Plymouth, MN 55441-3859 • 763 551 1230 • 800 422 0119(MN) • Fax 763.551.0459 <br /> Joint Ventures <br /> A significant number of Minnesota cities have operated retail natural gas utilities for <br /> many years. In recent years, a number of cities have installed new natural gas systems in <br /> their communities and have begun to provide this vital energy to their customers. It <br /> appears that there may be opportunities for joint ventures between cities and other public <br /> and private entities in the distribution of natural gas. <br /> There is also a pressing need for cities to become more active in providing <br /> telecommunications services. <br /> The 2001 omnibus energy bill contains language that allows cities to participate in joint <br /> ventures for providing electric service. Late in the legislative process natural gas and <br /> telecommunications were deleted from the legislation. <br /> Allowing municipal utilities to participate in joint ventures for providing gas and <br /> telecommunications services will likely result in greater economies of scale and enhanced <br /> service to customers. Therefore, we support legislation that would expand eligible joint <br /> ventures for municipal utilities to include natural gas and telecommunications. <br /> Minnesota Municipal Utilities Association <br /> February 2004 <br />